Release Explanation: As an indicator of economic performance the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports. “It measures the activity level of Purchasing Managers, who are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth,” TheLFB-Forex.com Trade Team said.

TheLFB-Forex.com Trade Desk Thoughts: The U.K. Manufacturing PMI rose more than expected for a second consecutive month in April. Despite this, weaker global demand still outweighs any benefit from sterling's fall against major currencies, and domestic conditions were especially poor due to the crises affecting car making, construction and retail.

Forex Technical Reaction: The pound traded on weak momentum during the overnight session, but gained 60 pips just ahead of the 4:30 releases.